S&P 500 Daily Trade Plan: Core PPI Volatility & The 6903.00 Momentum Shift
A detailed ES & VIX plan for Feb 27th, breaking down the massive 6965.00 short, the 6857.25 Line in the Sand, and the 20.78 VIX breakout pivot.
SCHEDULED NEWS
OPTIONS VOLITILITY LEVELS
Good morning everyone. Today is Friday, February 27th, and we come off another insane day with the trade plans as we finally got our massive short from the 6965.00 level that we’ve been talking about since the Weekend Review on Sunday. Substack trade plan subscribers knew exactly what to look for with the combination of VIX and SPX breaking their key important areas. The cash session opening below our significant pivot led to massive downside, and our subscribers got paid in full. Congratulations to all those who took advantage of that, as yesterday was a career-making day.
As price plays this massive high lost area, we are continuing to traverse down. Many of you know my long-term bearish and short-term bullish views as I was waiting for the 6965.00 area to tell us more. Now that we have smacked this area, we are starting to traverse lower and back into our significant support areas around the 6960s.
A Note on Today’s Market:
News: 8:30 AM Core PPI (Red Tag). Expect a significant shake pre-market.
Volume: Relative Volume is +4.4%. We have slightly above-average participants and traders are here to play.
Range: Expected range of 82 points. We’ve already moved 40 points in the overnight session, leaving us approximately 42 points above or below the overnight highs or lows.
Gamma: We are still in Negative Gamma territory. Dealers are hedging to the downside, and we can expect rotations in both directions fast and violently.
Trend: Downside. We had a nice 80+ point sell-off yesterday, and we continue to lose support on the Weekly, Daily, and 4-Hour timeframes.
🧠 Current Market Context
The Rejection & Downward Traverse
Yesterday we came down and played our Daily at 6870.75, which brought us back up to test our very significant Daily at 6928.00 (the same daily we broke above on Wednesday). This massive area proved to be our big resistance to the upside. As price stayed below this, we continued to drift lower in the overnight session. At the time of this writing, we are down 40 points as price gapped down last night, only to continue drifting lower after moving sideways.
